How Kroger reinvented itself

Cincinnati Enquirer, October 8, 2009 — The Kroger Co. realized nearly a decade ago that to survive it had to put the customer first, and permanently.

That meant larger stores with more products at cheaper prices. It meant cleaner aisles and shorter lines. It meant $4 generic prescriptions, organic food selections, Murray's Cheese counters and a 3-cent reward for using a reusable shopping bag.

It meant donating food to local food pantries, launching breast cancer awareness campaigns using local women, giving away its Deluxe ice cream to loyal Twitter followers.

Q&A: Hilton Steps Up Customer Loyalty Efforts†

Brandweek, February 24, 2009 — The hotel industry is going through a rough patch. But even in tough times, consumers are looking for an occasional getaway, according to Adam Burke, svp-customer loyalty at Hilton Hotels, which earlier this year kicked off its Hilton HHonors Double Points loyalty program. In a recent interview with Brandweek, Burke discussed the new program and how the Hilton family of hotels is faring in a down economy.

The 0.3% Solution

In good times or bad, a customer database is a license to do business.

Hub, December 8, 2008 — Research indicates that during the last two recessions (1990-91 and 2000-01), growth in every retail sector slowed. According to the McKinsey Quarterly, 93 percent of retailers surveyed experienced slowing revenue growth in one of the recessions and 59 percent found it true in both.

Unfortunately, it also takes retailers longer to benefit from the turnaround when it does happen. The average retail growth rate in the year of recovery in both 1991 and 2001 was just 0.3 percent.

Most of us start to hunker down and take a defensive approach to a recession. Obviously cutting costs where possible is common sense. But when it comes to marketing at retail, cutting back is a self-fulfilling prophecy to 0.3 growth.

During previous recessions, advertising,... continue reading

Harrah's Changes Its Game†

Tough Times for Gambling, Large Debt Force Shifts

Wall Street Journal, October 27, 2008 — Gambling giant Harrah's Entertainment recently cut the hours at some of its casino VIP lounges, and even replaced plates full of hearty sandwiches with bruschetta and hummus. The moves riled Harrah's middle-market customers, who are accustomed to getting the high-roller treatment in exchange for their loyalty.

The changes were a small sign of larger problems at the nation's biggest casino company.